C. Williams

The Township of Oro-Medonte brought an application for a declaration that a strip of waterfront land known as Lake Shore Promenade, shown on a 1914 plan of subdivision, was a public highway owned by the municipality.

The respondent abutting lot owners argued that the land was not a public highway and claimed possessory title through adverse possession, having maintained the land and built shore-related structures on it for decades.

The court held that while the original owner intended to dedicate the land as a public highway, the Township's acceptance of it as such was void because the land did not meet the statutory width requirements for a highway in 1914.

Instead, the land was held by the Township in trust for the public as an access way and lakeside park.

The court further held that municipally owned land held for public benefit is immune from adverse possession claims, and in any event, the respondents failed to establish exclusive and adverse possession.

However, the court found a prima facie case that the doctrine of laches could apply to prevent the Township from removing existing shore-related structures due to its long-standing acquiescence, and directed a trial on that issue.

Following a successful application to declare a municipal by-law invalid, the applicant sought costs on a partial indemnity basis up to the date of an offer to settle, and substantial indemnity costs thereafter.

The respondent argued each party should bear its own costs due to the public interest nature of the case.

The court awarded costs to the applicant, finding the public interest exception did not apply.

However, the court declined to award substantial indemnity costs under Rule 49 because the applicant's offer contained terms beyond the scope of the litigation.

The court fixed partial indemnity costs at $74,006.60, adjusting the claimed rates to 60% of substantial indemnity rates.